BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1149
                                                          Page  1

Date of Hearing:   April 19, 1999

          ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE 
                     Roderick Wright, Chair
          AB 1149 (Aroner) - As Amended:  April 8, 1999
  
SUBJECT  :   Underground electric and telephone facilities.

  SUMMARY  :   Requires the California Public Utilities Commission  
(CPUC) to conduct hearings and submit a report to the  
Legislature, by January 1, 2001, on existing regulations  
relating to underground electric and telephone facilities.   
Specifically,  this bill  :  

Requires the CPUC to investigate and assess the following  
aspects of its undergrounding program:

   a)   The continuity of the existing underground system and  
     ways to eliminate uneven patches of overhead facilities;

   b)   Ways to enhance public safety;

   c)   Ways to improve reliability; and

   d)   Ways to provide more flexibility to local governments.

 EXISTING LAW  authorizes CPUC to supervise and regulate every  
public utility in the state and to do all things necessary and  
convenient in the exercise of its power and jurisdiction;

Specifies that CPUC has regulatory authority over public  
utilities.

  FISCAL EFFECT  :   Unknown.

  COMMENTS  :   

1)The author has introduced this bill to address a district  
  issue.

2)According to City of Oakland officials, recent undergrounding  
  projects within the city have resulted in scattered streets  
  within a proposed utility undergrounding area and fail to meet  
  any of the three CPUC criteria for such projects.  When  
  undergrounding projects fail to meet the CPUC criteria, the  








                                                          AB 1149
                                                          Page  2

  public utility cannot utilize existing funds set aside for  
  construction costs.  As a result, the costs to install the  
  underground facilities must be paid by the property owners,  
  "which becomes extremely cost-prohibitive."

3)According to the author, the purpose of this bill is reexamine  
  existing CPUC undergrounding rules and procedures,  
  specifically Tariff Rule 20, which was established just over  
  three decades ago. 

4)The CPUC ordered the institution of overhead to underground  
  conversion programs for electric utilities in 1967 (D. 73078),  
  for aesthetic and safety purposes.  According to CPUC staff,  
  this bill is a worthy approach to address the need to revise  
  and update Tariff Rule 20.
  

REGISTERED SUPPORT / OPPOSITION  :   

  Support  

City of Oakland (sponsor).

  Opposition  

None on file.
  
Analysis Prepared by  :    Joseph Lyons / U. & C. / (916) 319-2083